The fraud figures indicated that total card fraud losses dropped by 3% to GBP428 million from GBP439.4 million in 2005, driven primarily by a 13% decline in UK domestic fraud and the combined reduction of more than GBP45 million in mail non-receipt and lost and stolen fraud.
Losses at UK retailers also fell by GBP146.7 million over the past two years due to the widespread execution of the chip and PIN system. However, criminals are still committing card fraud by attempting to extract data from the magnetic strip on the back of the card, which can be potentially used in countries that have not yet implemented the chip and PIN system.
In addition, card-not-present fraud losses have increased by 16% and now account for just under 50% of all card fraud losses.
These figures clearly show that there is no one-size-fits-all approach to dealing with fraud, stated Sandra Quinn, director of communications at Apacs. Chip and PIN has had a hugely positive effect on fraud losses over the counter in UK shops and stores, but we are seeing more fraud on transactions that do not use chip and PIN – such as over the internet and phone, by mail order and abroad in countries that have not yet fully upgraded to chip and PIN.
